WEST CHESTER — The Chester County Hospital and Health System said Friday it signed a non-binding letter of intent to join the University of Pennsylvania Health System.

The two organizations expect to complete the transaction in the spring following customary approvals.

Financial terms were not disclosed.

In August, Chester County Hospital announced its intention to seek a strategic corporate partner for its West Chester-based system.

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The confidential letter of intent provides for a period of due diligence when Penn will review additional information regarding Chester County Hospital.

The hospital has existing relationships with Penn in the areas of cancer, radiology, radiation oncology and maternal fetal medicine.

William W. Wylie Jr., hospital chairman, said, “Throughout this process we spoke with many excellent organizations, but it quickly became clear to our Strategic Planning Committee and our Board of Directors that the potential to join the University of Pennsylvania Health System was the best decision for our community and our health system.”

Ralph W. Muller, CEO of the University of Pennsylvania Health System, noted that Chester County Hospital “is an outstanding organization, and its incorporation into our health system would bring significant benefit to both institutions and the communities we serve. We look forward to working collaboratively with the excellent physician and administrative staff to reach a definitive agreement.”

Chester County Hospital was founded in 1892 as the first hospital in the county.The hospital has 220 beds and is building a new patient tower that will open in the summer of 2013 with capacity for 72 private patient rooms. Future plans call for a new Women and Babies Wing. Kevin Holleran, an attorney and chairman of The Chester County Hospital Foundation, stated, “The University of Pennsylvania Health System is a world renowned leader in patient care, education and research. We are excited about bringing these resources, knowledge and expertise to our community and accelerating our vision to be the leading provider of care in our region and a national model for quality, service excellence and fiscal stewardship.”